Читать книгу Binary Trading - John Piper - Страница 32

We have touched on this under cheap bets when I suggested taking out a few points profit. However if we are going to trade the position we do not need to buy quite so cheaply as we will be quicker to get out.

Look again at how binary bet prices move as set out at the start of Chapter 6 of Binary Betting. I made the point that action between 35 and 65 can be jet-propelled. But below 20 and above 80 it gets much slower.

Why not turn that to your advantage?

Buy between 30 and 40, then look to exit above 60. Or sell between 60 and 70, then look to exit below 40.

Entering at those prices gives you the possibility of very quick profits but if price moves against you it would be a relatively sluggish process. It might still be fast, ultimately that depends on action in the underlying market, but profits should come in faster.

If the bet does go awry you should have plenty of time to get out at your chosen level. Maybe you only want to risk 15 points, or 20, and you simply close out if the appropriate level is hit.

With an approach like this you will need to consider your strategy carefully and here are some guidelines:

1 You should ensure that your average profit equals at least two or three times your average loss.

2 You must ensure that you profit at least half the time.

3 If we were talking about spread betting I would add that you must not let losses run away – but that is one of the great benefits of binary bets – losses can’t run away!

To end this section I will outline one critical element of system design. If you go for smaller profits there will be more of them and this is important as most traders have difficulty with lots of losses and a few profits. We all like making money most days if possible. But clearly the important thing is to come out on top overall and these two goals sometimes prove mutually incompatible.